The analysis says that government incentives, support mechanisms for energy independence and growing environmental awareness have boosted the inverter market for renewable energy systems in Europe.
Additionally, improved grid access, simplified administrative procedures and the development of infrastructural prerequisites for new projects are said to be factors that will expand the market further. High electricity prices will also call for more economical distributed generation systems which in turn will fuel the demand for renewable inverters.
"The European Union’s measures to address the dependence on fossil fuel imports will spur the need for renewable inverters in the region," said Frost & Sullivan Energy and Environmental Research Analyst Gautham Gnanajothi. "Emphasis on climate change and reducing carbon emissions drives the acceptance of cleaner and greener energy sources, and aids inverter market growth."
Hurdles are also foreseen, nevertheless. The cost of renewable energy installations as well as the price of semiconductor materials used in solar panels are still considered high. Adding on the lack of immediate return, these factors can curb the demand.
Moreover, with the uncertain renewable energy policies looming over key markets like Germany and Italy, Frost & Sullivan sees a dip in growth in these markets.
However, other emerging new markets like Belgium, Slovakia, Greece, Czech Republic and Bulgaria are expected to boost demand. "In addition, several inverter manufacturers in Europe are looking to include micro inverters in their product portfolio to widen their scope," added Gnanajothi. "The market will also witness consolidation; with notable acquisitions and mergers expected in the future."